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Unformatted text preview: Exercise 1-1 (10 minutes) 1. Line 2. Directing and motivating 3. Budgets 4. Planning 5. Staff 6. Decentralization 7. Precision; Nonmonetary data 8. Managerial accounting; Financial accounting 9. Feedback 10. Controller 11. Performance report 12. Chief Financial Officer Exercise 1-3 (15 minutes) If cashiers routinely shortchanged customers whenever the opportunity presented itself, most of us would be careful to count our change before leaving the counter. Imagine what effect this would have on the line at your favorite fast-food restaurant. How would you like to wait in line while each and every customer laboriously counts out his or her change? Additionally, if you cant trust the cashiers to give honest change, can you trust the cooks to take the time to follow health precautions such as washing their hands? If you cant trust anyone at the restaurant would you even want to eat out? Generally, when we buy goods and services in the free market, we assume we are buying from people who have a certain level of ethical standards. If we could not trust people to maintain those standards, we would be reluctant to buy. The net result of widespread dishonesty would be a shrunken economy with a lower growth rate and fewer goods and services for sale at a lower overall level of quality. Problem 1-6...
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